- An energy only product allows for a business to lock in the wholesale price of energy only, while allowing all other deregulated components to flow as a pass through components.
- Options for length of the contract may vary based on the retail supplier.
- An energy only rate is preferred by businesses located in a capacity market. Capacity charges are published 3 to 5 years out, by knowing what the capacity charges will be allows for businesses to weigh in the risk between fixed all-in and energy only products.
- We recommend energy only product in the event the published capacity rates spike, because the capacity rates are published 3 to 5 years in advance, business owners can make an educated decision while evaluating the risk based on the published data.
- Energy Only price product is exactly what is sounds like, a product that only fixes in the Wholesale Price of Energy. All of the other deregulated components are passed trough to the customer at cost.
- This product can be misused by competition, especially by door-to-door customer acquisition companies. Some of the sales agents selling this product don't even know that they are misleading the customer.
- Be on alert when-ever you hear a price that is too good to be true, because in all likelihood it is.